Pakistan Daily Economy Update - 15 June

Transcription

1. Jun . 15, 2017 KCCI - eBulletin Govt. takes another anti-regulatory body step Regulatory bodies have been made subordinate to line ministries subsequent to the issuance of a second notification by the Cabinet Division. Cabinet Division has issued a notification on Jun. 6, 2017 saying that following Divisions will deal with the federal govt. functions of the regulatory authorities: (i) Water and Power Ministry - Nepra; (ii) Petroleum Ministry - OGRA;(iii) IT Ministry - PTA + Frequency Allocation Board and; (iv) Finance Division - PPRA. Earlier, regulatory bodies' summaries were channeled through the Cabinet Division which will now be processed by the respective administrative Ministries. BR. Govt. to revise trade policy Commerce Minister Khurram Dastgir, in a meeting with a delegation of Asian Development Bank (ADB) led by its senior adviser Warner Liepach, has said that commerce ministry is working on revising the Strategic Trade Policy Framework (STPF) and that reimbursement of tax refunds and payment of funds under PM package is the govt.’s top priority. The Minister further said that the ministry will soon introduce law on geographical indication. He also informed the ADB adviser that before the end of this year, ministry will launch a campaign for international brand marketing of Pakistan. BR. Shanghai Electric committed to KE deal Shanghai Electric is committed to completing its deal with K-Electric for the acquisition of 66.4% share in the power company. Arif Habib Ltd (AHL) transaction manager, has said in a stock exchange filing that the acquirer, continues to be fully committed to consummate the transaction pending receipt of regulatory and other approvals. Dawn. Supplementary grants reduced Finance Minister Ishaq Dar, while passing concluding remarks on Budget-2017-18 in the National Assembly, said that govt. has succeeded in reducing supplementary grants significantly to PKR 121Bn during the outgoing FY17 as compared to the previous year. When grants, authorized by the Parliament, fall short of the required expenditure, an estimate is presented before the Parliament for Supplementary or Additional grants. The House also approved 1,241 supplementary demands for grants and appropriations of PKR 242Bn for various ministries, divisions and departments for FY17. BR. Govt coins new term for public debt The government has quietly amended the definition of public debt through the Finance Act 2017, which will immediately understate the debt by a whopping PKR 2Tn. According to a new clause introduced in the Finance Act recently passed by the National Assembly, “total debt of the government is public debt less accumulated deposits of the federal and provincial governments with the banking system”. The single change would reduce the public debt to PKR 18.9Tn, although technically the debt remains on the government’s books. It is the second change in the definition of public debt during the last one year after the finance ministry has miserably failed to curtail the debt and is now applying windowdressing tactics instead. Tribune. Second LNG terminal hits snags Pakistan’s second LNG terminal is getting delayed and efforts are afoot to execute a fresh commercial operation date (COD) to sidestep liquidity damages to private investors. The government has been postponing shipments of LNG secured in Jan‘17 through competitive bidding from Gunver and ENI because of the infrastructure shortfalls. It has already delayed four LNG cargoes to Oct’17 which were originally planned for Jul‘17. The suppliers are reported to have warned the government to make arrangements for LNG off-take, cancel the bids or get ready for penalties. Dawn. Fresh moves to curb money laundering, terror financing SBP has taken some new steps to combat money laundering and terror financing, directing all banks and DFIs to take strict measure for minimizing risks. According to new amendments, banks and DFIs will make comprehensive assessment \ of controls on asset products and related customers to ensure effective implementation of due diligence requirements as per their own assessment of materiality and risk without compromising on identity and verification requirements. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 104.88 106.00 47,609 3.43 44.93 1,261.7 43,028 16.88 7,234 6.15% 2-Jun $ Bn 20.52 0.00% 0.00% -0.96% NM** -2.88% -0.38% 0.10% 0.44% 0.00% -0.02% WoW -5.76% YoY -2.13% -3.13% 20.60% -42.12% -204.75% USD-Interbank USD-Open MKT KSE-100 index FIPI Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M Forex Reserves Jul-May 17 Remittances $ Bn 17.46 Jul-May 17 Exports* $ Bn 18.54 Jul-May 17 Imports* $ Bn 48.54 Jul-May 17 Trade Balance* $ Bn -30.00 Jul-Apr 17 Current Account $ Mn -7,247 % 4.18 Avg. CPI-FY17* Jul-May 17 May-17 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 135 125 115 105 95 85 75 Jun-16 GBP, 14-Jun-17, 133.7 EUR, 14-Jun-17, 117.7 USD, 14-Jun-17, 104.8 Sep-16 USD GBP Dec-16 Mar-17 Jun-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Take risks now and do something bold. You won’t regret it." Elon Musk Chart of the Day Gwadar airport construction likely to begin by Sept.’17 Construction work on New Gwadar International Airport (NGIA) is likely to start by the end of Sept.’17 after the approval of grant by the Chinese govt. The project will be completed in two to three year and will cost $ 230Mn (around PKR 23Bn). The airport along with allied facilities for new airport will be capable of handling a combination of ATR 72, Airbus, (A-300), Boeing (B-737) and Boeing (B-747) for domestic as well international routes. Around 4,300 acres of land 26km northeast of the existing airport has already been acquired. The Nation. SBP, CCP sign agreement to share information SBP and CCP have signed MoU which aims to assist and share unclassified information with each other on matters that fall within the statutory mandate of both the institutions. The MoU further said that the SBP and the CCP will assist each other in matters of mutual interest for better implementation of respective statutory powers. Dawn. SBP grants approval of NIB Bank’s merger with MCB State Bank of Pakistan (SBP) has granted approval for the merger/amalgamation of NIB Bank Ltd. with and into MCB Bank Ltd. SBP, through its order dated Jun. 13, 2017, has sanctioned the Scheme of Amalgamation. The Scheme of Amalgamation will become effective within 30 days from the SBP sanction on a date to be notified by the two banks to SBP. The merger/amalgamation of the two banks will take place through a share swap arrangement whereby one share of MCB Bank will be issued for every 140.043 shares of NIB Bank. The dissenting shareholders of NIB Bank shall be entitled to receive the value of their shares at the rate of PKR 1.70 per NIB share. The Nation. Pakistani rickshaws make their way into Japan Japan has traditionally been a major market for car buyers, but things are looking up for Pakistan as Sazgar Engineering, a Pakistani manufacturer of 4-stroke CNG auto rickshaws, has been exporting its rickshaws to Japanese markets. Colorful truck and vehicle art is famous worldwide and locally manufactured rickshaws are famous in Japan for a similar appeal. Tribune. Pakistan's Foreign Exchange Reserves 15.71 18.14 13.53 2 Jun'17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07 FY06 FY05 4.81 5.17 4.96 9.10 5.04 6.01 5.01 10.80 4.49 14.78 3.46 12.96 3.79 9.12 3.31 8.58 2.82 13.35 2.30 10.77 2.36 9.80 2.79 0.0 3.0 6.0 9.0 12.0 SBP Reserves ($ Bn) 15.0 18.0 21.0 24.0 Banks Reserves ($ Bn) Source: KCCI Research, SBP Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained herein have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information has not been independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk